Minnesota Bankruptcy Laws & Exemptions
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Minnesota Bankruptcy Laws

Chapter 7 and Chapter 13 bankruptcy in Minnesota

If you’re a Minnesota resident who’s looking for information on debt-relief options including personal bankruptcy, you’ve come to the right place.

Some Minnesota residents are interested in understanding the differences between Chapter 7 and Chapter 13 bankruptcy; others want to speak with a Minnesota bankruptcy lawyer in order to get an idea of how bankruptcy could benefit them personally.

Wherever you fall on that spectrum, this page can help you get started.

To speak with a local Minnesota bankruptcy lawyer for free, fill out the below free bankruptcy case evaluation form:

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Personal Bankruptcy: Chapter 7 and Chapter 13

Chapter 7 bankruptcy is sometimes called "liquidation," because it may involve a liquidation sale to raise money to pay back the filer’s creditors.

Liquidation simply means conversion to cash, and a liquidation sale consists of selling a filer’s non-exempt assets to raise money.

Without the legal-speak, this means that Minnesota law protects many items of personal property (protected items are called “exemptions”) from a bankruptcy sale.


  • Up to 160 acres of property valued at up to $300,000. Value may be up to $750,000 if homestead is primarily used for agriculture.


  • Up to 75 percent of gross earnings.


  • $2,000 for one vehicle.
  • $20,000 that has been modified at a cost of not less than $1,500 to accommodate a physical disability.

Personal Property

  • 100 percent of clothing, utensils, food, bible, musical instruments, church pew, burial lot and one watch.
  • Up to $1,225 for wedding rings.
  • Up to $4,500 for household appliances, phonographs, radios and televisions.
  • Up to $5,000 for tools of the trade.

Chapter 13 bankruptcy is called "reorganization," because it works by giving filers a chance to reorganize and catch up on their debts by following a three- to five-year repayment plan. Generally speaking, filing bankruptcy under Chapter 13 tends to work well for those who have a regular, steady income and are able to adhere to the repayment schedule.

You may have also heard that Chapter 13 bankruptcy can stop mortgage foreclosure. Here’s how: the automatic stay, which prevents all collection action (including foreclosure), takes effect as soon as a bankruptcy case is filed. The protection of the automatic stay remains throughout the duration of the bankruptcy case – in Chapter 13, that’s usually several years.

Speak with a Minnesota Bankruptcy Lawyer Today for Details

As you can see, Minnesota bankruptcy law requires a bit of interpretation. Whether you’d like to speak with a Minnesota bankruptcy lawyer to help you better understand which of your belongings you could keep in a Chapter 7 bankruptcy filing, help you determine how Chapter 13 bankruptcy could help you keep your home or explain some bankruptcy alternatives, Total Bankruptcy is ready to help.

Simply call us at 877-349-1309 or fill out this free case evaluation form and we’ll connect you with a sponsoring bankruptcy attorney practicing near you in Minnesota as soon as possible.

Note: Keep in mind all laws are complex. If you need legal advice or want to fully understand how these laws affect you, please speak with a local attorney.

Laws may have changed since our last update. For the latest information on your state's bankruptcy laws, speak to a local bankruptcy lawyer.

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